Oppenheimer Gives Q1 Earnings Preview On Comcast

Comcast CMCSA reports 1Q11 results tomorrow morning before the market open. Oppenheimer expects CMCSA to report 1Q11 recurring EPS of $0.38. Oppenheimer expects consolidated EBITDA margins to be essentially flat sequentially at 38.4%. For the quarter Oppenheimer is forecasting that the company added 764K RGUs; however, there could be upside to the estimates, especially in broadband. Oppenheimer is forecasting basic sub losses of 80K in 1Q, along with broadband adds of 325K and telephony adds of 219K. Positively, it expects cable ARPU growth to remain strong in the 10% range. Notably, this quarter's financial results will be confusing given it will have partial results post the NBC Universal close. The company should provide pro forma historical results, which will allow a better fine-tuning of its model. Oppenheimer expects to hear from management on its plans for the new assets including possible FY11 guidance. In addition, it expects an update on the current competitive/economic status of the industry/CMCSA's operations. Oppenheimer has an Outperform rating on Comcast CMCSA closed Monday at $26.68